Brazil Potash executes offtake agreement with Keytrade Fertilizantes Brasil

The binding agreement established a 10-year take-or-pay commitment for Keytrade to purchase up to ~900 000 tpy of potash annually from the Autazes Potash Project. This finalised the memorandum of understanding (MoU) announced on 16 January, 2025.

"This agreement with Keytrade is a major milestone in Brazil Potash's commercial development," said Matt Simpson, CEO of Brazil Potash. "Combined with our existing take-or-pay agreement with Amaggi Exportacão E Importacão Ltda., we now have binding commitments for ~1.45 million t of our planned ~2.4 million t of annual production. These long-term contracts provide the revenue certainty essential for securing project financing and advancing construction."

“We are thrilled to announce a major contract with Brazil Potash to distribute up to 900 000 t of potash to the Brazilian industry. This partnership marks a pivotal moment for Keytrade and reinforces our commitment to supporting sustainable agriculture in Brazil,” commented Anthony Jezzi, CEO of Keytrade Fertilizantes Brasil. “For over 28 years, Keytrade has helped clients source fertilizers globally, offering tailored services to meet local market needs. We are proud to now include Brazilian potash in our portfolio. This collaboration with Brazil Potash is a strategic step toward reducing Brazil’s reliance on imports and fostering economic growth in the Amazon region. Keytrade is privileged to have been chosen to take over this important task and look forward to a successful partnership that benefits both companies and strengthens Brazil’s agricultural future,” added Anthony.

Key terms of the agreement

• Volume commitment: Keytrade will purchase 30% to 37% of Brazil Potash's annual potash production, up to a maximum of 900 000 tpy, on a take-or-pay basis.
• Contract duration: the agreement has a term aligned with the company's project financing requirements, ensuring long-term revenue visibility and stability.
• Pricing structure: Keytrade receives a marketing fee and the agreement includes a profit-sharing provision designed to align incentives for both parties reflecting Brazil Potash’s strategic locational advantage and expected lower fines content.
• Production ramp-up: Keytrade's offtake obligations will commence upon the start of production and scale proportionally during the ramp-up period to full production capacity.
• Strategic flexibility: the agreement permits Brazil Potash to assign future payment rights to financial institutions for project financing purposes.

Commercial strategy progress

With the Keytrade agreement finalised, Brazil Potash has secured binding offtake agreements covering ~60% of planned production. The company is also in advanced discussions with a prospective partner that would increase total volumes to ~91% of annual capacity. The remaining production is reserved for spot sales to support our farmers, accommodate maintenance outages and production variability.

This strategic agreement follows and builds on our recently announced MoU for ~US$200 million power line construction and US$20 million investment with Fictor Energia for renewable power supply.

Read the article online at: https://www.worldfertilizer.com/potash/22082025/brazil-potash-executes-offtake-agreement-with-keytrade-fertilizantes-brasil/